NEWS BLIPS
Dometic International Plans For The Future
Editor's Note: This news item was retrieved and first published through Bloomberg's website.
U.S. RV manufacturers have been hit with a slump in demand, as shipments fall 29 percent in September from a year earlier. While Dometic Group AB’s CEO Juan Vargues since 2018 says October “felt better,” he is reluctant to rely on customers who claim the drop is merely due to inventory adjustments. Dometic announces they are seeking to diversify beyond RV market after recent slump. He briefed 155 managers on the key points at a meeting in Berlin a month ago, and will include details about structural measures in the fourth-quarter report in February.
According to the Bloomberg report by Niclas Rolander and Niklas Magnusson, Vargues says, “We need to work with internal efficiency to be able to invest for the future,” in an interview in Stockholm. One key aspect of the new direction is to reduce dependence on makers of recreational vehicles, who account for 40 percent of its sales. “We need to make sure to reduce the exposure further ahead of the next downturn,” Vargues said. “That’s what I see as my job.” Dometic also seeks investors to look beyond the recent slump in the RV market that contributed to Dometic’s shares declining some 30 percent so far this year.
To read in more detail about Dometic AB's strategy, click here for the full article.
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